US Mobilizes Global Allies for Critical Minerals Trade Bloc to Counter China

Washington, Thursday, 5 February 2026.
On February 4, 2026, the United States escalated its economic strategy against China by unveiling a preferential trade bloc for critical minerals. Vice President JD Vance proposed a coordinated system of price floors and adjustable tariffs designed to insulate allied supply chains from Beijing’s market dominance. This initiative, supported by the newly launched $12 billion “Project Vault” reserve, seeks to stabilize prices for materials essential to AI and defense sectors, which have historically been undercut by Chinese oversupply. While officials from over 50 nations participated in the Washington summit to launch the Forum on Resource Geostrategic Engagement (FORGE), the immediate market reaction was volatile, with critical mineral stocks dropping up to 7%. This move signals a pivotal shift toward managed trade to secure geostrategic resources.